U.K. Announces Restaurant and Pub Curfew
U.K. Prime Minister Boris Johnson announced new government restrictions in response to growing COVID case counts across Britain. Johnson announced that all bars, pubs and restaurants must be closed by 10pm and encouraged people to work from home when possible.
The new restrictions are a bad sign for many reasons. First, they will have a negative direct effect on the bar, pub and restaurant industries. Wetherspoons fell nearly 4% yesterday after the announcement. The food and drink industry’s decline will lead to other industries being hurting as the whole economy struggles.
On a greater level, the restrictions are a sign of how COVID could continue to present a challenge in the long term if a vaccine is not approved. After the initial outbreak of the virus, many presented the battle as a very linear path. However, what has occurred has been an ebb and flow of restrictions and case counts with one peaking while the other relaxes. If this process persists, neither the economy nor health outcomes will end up in good shape.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.